Global Markets Eye US CPI Data and Japan Policy Shift

The upcoming week is set to be a critical one for global markets as key economic indicators are released. On Tuesday, the US Consumer Price Index (CPI) data will provide insights into inflation rates, which in turn could influence the Federal Reserve's policy decisions.

Economists expect the annual inflation rate to have eased slightly, but core inflation is likely to remain sticky, reflecting persistent price pressures in services and shelter. A hotter-than-expected CPI reading could dampen hopes for an early rate cut, while a cooler number might reinforce market expectations of a policy pivot later this year.

The Bank of Japan's summary of opinions will also be closely watched, as it offers insights into the board's thinking on the timing of a potential exit from its ultra-loose monetary policy. The central bank has signaled that it is moving toward normalization, but the pace remains uncertain.